MODULE CONTENTS
This module covers the stages in the money laundering process. It presents the three stages of money laundering: placement, stacking and integration, and explains how criminals reinject illegal funds into the legal economy. The role of real estate agents in detecting suspicious activity is also highlighted, with an obligation to report any suspicion of money laundering to Tracfin.
LEARNING OBJECTIVES
The stages of money laundering
Money laundering is the process of reintroducing funds derived from criminal activities, such as drug trafficking or tax fraud, into the legal economy. There are three key stages in this process: placement, stacking and integration.
The first stage, placement, involves injecting funds of criminal origin into legal economic circuits, often via cash-intensive sectors such as bars, restaurants or gambling establishments. Fractional deposits in financial institutions or international transfers are also used to avoid arousing suspicion.
Next comes stacking, where money launderers seek to complicate the traceability of money through multiple and complex financial operations. They often use shell companies, offshore accounts or tax havens to disguise the origin of the funds, making it difficult to trace them back to their original source.
The final stage is integration, where laundered money is reintroduced into legal activities. This may involve investments in real estate, stock markets, luxury goods or business start-ups. At this stage, the funds appear legitimate and can be used freely in the economy.
The fight against money laundering is a major issue for the authorities. Regulators require professionals in various sectors (banks, financial intermediaries, lawyers, etc.) to monitor suspicious transactions and report them to the authorities, such as Tracfin in France. This vigilance helps to deprive criminals of their financial resources and maintain the integrity of the financial system.
